My Finances Today — When Will Uyesugi searched car insurance apps on his iPhone, he came across Go alongside GEICO, State Farm and Allstate. The 36-year-old based in Los Angeles was intrigued, because Go was an app he hadn’t heard of, and he wanted to save money on his insurance payments for his 2012 Audi.
“I called a well-known insurer from the Go app and was told I could save $200 when my car insurance policy is up for renewal,” Uyesugi told MainStreet. “I’m happy about that.”
“I’m busy and like to use my money for the things I value most,” he added. “So if there’s a free app that shows me how to save and is easy to use, I use it.”
Available on iTunes, Go allows the average driver to save $342 by tracking miles driven, but an exact discount depends on location, the vehicle’s make and model and mileage. The catch is that only iPhone users are privy to Go’s discounts.
“The Go software and iPhone hardware are tightly coupled to use your iPhone’s motion co-processor to determine how many miles you drive,” said Kevin Pomplun, CEO and co-founder of Go in Silicon Valley. “Once Go knows your mileage, it will tell you if there are discounts based on that number.”
A reduced number of miles traveled can mean diminished car insurance costs. With more Americans working from home or experiencing shorter commutes, those drivers see a reduction in their average monthly mileage and can use that info to reduce their monthly insurance fees. Go helps track and streamline the process.
This tech-savvy app approach to the conundrum of reducing car insurance costs is fitting with the demographic that is most likely to use pay-as-you-drive insurance payment plans. Some 43% of Millennials between ages 18 and 29 would consider this type of insurance payment program, the largest percentage of any demographic according to an insuranceQuotes.com survey. Though consumers are often concerned this type of insurance will interfere with their privacy by tracking their movements, Millennials are most comfortable with this kind of exposure to personal data — especially if it’s allowing them to save a fast buck, with average savings of 10% to 30%.
One policy available through Go is State Farm’s Drive Safe & Save, which allows drivers to save based on sharing mileage with their insurer. “When your insurer knows the number of miles you drive, they offer discounts based on that number,” Pomplun said.
For example, someone who drives under 12,000 miles a year can save an average of 12% with State Farm while a driver with less than 7,500 miles on his odometer can save more than 40%.
“Before Go, a lot of drivers in California didn’t take the time to share their mileage, but now with Go it’s almost effortless to do so,” Pomplun told MainStreet. “More drivers can save with these policies because of Go.”
Although a national service, Go is currently iOS, available only to iPhone, iPod touch and now Apple Watch holders.
“Like most people, I don’t spend a lot of time thinking about car insurance,” said Stephen Steger, a mechanical engineer in San Francisco. “So if Go can track my mileage and tell me about better prices when I change zip codes, that’s less work for me. Everyone likes saving money.”
The 29-year-old appreciates the service even though he hasn’t signed up for car insurance through Go yet.
“I’m currently with USAA, which I hope Go is going to make available soon,” Steger told MainStreet. “Also I’m moving to Los Angeles and found out that Go will tell me if my current insurer has a better rate in my new zip code. I think that’s really useful.”
Customers can also save with Go Safe Map, which is similar to Apple Maps.
“Go will tell you which insurers are the most popular among your neighbors, which insurers have the best customer service and which insurers are the fastest growing in your neighborhood,” said Pomplun. “Like Yelp for food or Expedia for hotels, people like to know what services others around them use.”
—Written by Juliette Fairley for MainStreet
